cenvat credit reversal on capital goods-reg

[Ramakrishnan Seshadri]

Dear Sir,

We are having one imported machine imported during 2011. We have taken cvd and sad. Now we want to sell the machine. What is the procedure. whether the sad amount also has to be reversed or only cvd has to be reversed.

how to go about it. Kindly experts please clarify.

Thanks & Regards,

S.Ramakrishnan

AI Summary

Cenvat credit reversal on capital goods: both CVD and SAD credits must be reversed or duty on transaction value paid.
Cenvat credit reversal on disposal of capital goods requires payment equal to the CENVAT credit taken reduced by quarterly straight line percentages; if that calculated amount is less than the duty leviable on transaction value, the duty on transaction value must be paid. Clearance as waste or scrap mandates payment equal to the duty on transaction value. Cenvat credit covers both countervailing duty and special additional duty, and both must be reversed when capital goods are removed unless duty on transaction value is paid.